I finally dug in to try to get my 25 stocks. I went through the Allocator tool which led me to different stocks. Within the groups of “Large Cap” or “International” there were stocks that were supposedly positive or neutral.
Charlotte’s Web (CWBHF)came up as a “neutral” even as it stock is now down to 0.59. It has a buy recommendation but that is from 2019. Lemonade came up as positive but an August 10th story from TMF said, “However, I’d personally avoid this speculative company until its gross margins stabilize, its gross loss ratios decline, and it significantly narrows its net losses.” It was similar with Upstart which looks on the surface like a positive but the details seems to suggest rocky roads ahead.
I realize they cannot provide recommendations just for me, but it seems even the standard information is hard to use if the information isn’t adjusted for what is going on now (e.g. overall Lemonade could be good again but the article says stay away).
Any perspective?
Thank you.
Hi, WCGuy2001.
Personally, I was never a fan of Charlotte’s Web as an investable company but that’s neither here nor there. As a penny stock currently, I would not not consider int an investable company regardless of recommendation status.
However, what I would say is that the Allocation Tool is not based, nor does it factor in market price. It’s looking primarily at capitalization and conviction ranking. Conviction ranking is the collective belief across participating TMF analysts who believe the company has the potential for strong long-term (3-5 years or longer) business growth.
Fuskie
Who notes that TMF’s admonition to focus on a company’s business performance and not its market performance applies to all markets, good and bad…
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Thank you! I appreciate the perspective.
Will